Financial Planner Cost

Typical costs:

• Certified financial planners generally charge in one of three ways: a fixed or hourly fee for a specific service (called fee-only); no fee but with a commission earned on the products bought; or a combination of a fee for the planning process and commissions on the products bought. The Financial Planning Association provides an overview of how planners charge for their services^[3] , and Invest-FAQ.com describes the biases and potential conflicts^[4] in each of the ways financial planners are compensated.
• Hourly rates can cost $100-$400, depending on location and the planner's qualifications, but average $175 an hour, according to Financial-Advisors.in. New Means Financial Planning, a fee-only service in New Hampshire, estimates that a financial consultation for clients in their 20s and early 30s can cost $540-$900, while a pre-retirement assessment could be $1,080-$1,800, and a comprehensive financial review might run $1,620-$3,960. Minerva Planning Group in Atlanta, Georgia, describes a sample retirement plan^[5] that required seven hours of work at $190 an hour, for a total cost of $1,330. Flat fees (rather than hourly rates) are generally based on an average number of hours of work, and start around $400-$500 for basic financial plans and increase depending on the scope and complexity.
• Commissions range from 1 percent or less on money market accounts and treasury bills, up to 5.5 percent on mutual funds (which translates to $500-$2,375 on a $50,000 investment). Most financial planners will provide a half-hour or hour-long initial interview for free.

• Financial planner services can range from a one-time analysis to ongoing oversight of any investments and other accounts. A financial planner may help with decisions like how large of a monthly mortgage payment a first-time homebuyer can handle without harming other financial areas, when to refinance a house, or deciding when and how to retire. The US Securities and Exchange Commission^[6] provides a brief overview.

• Legally, anyone can call themselves a financial planner. However, several industry groups have credentialing programs; it's possible to search^[7] the Financial Industry Regulatory Authority for an explanation of specific professional designations, such as Certified Financial Planner (CFP).
• Interview several planners to learn more about their skills, training, personality and services. If possible, meet face-to-face. Ask specific questions about their expertise, services included and what the plan will look like when the process is complete. The Financial Planning Association lists questions to ask^[8] . The National Association of Personal Financial Advisors, whose members are all fee-only planners, provides tips and tools^[9] for choosing a financial planner. And MSN.com lists 8 Things a Financial Planner Won't Tell You^[10] .
• Search for local financial planners with the Certified Financial Planner Board of Standards^[11] , Financial Planning Association^[12] or the National Association of Personal Financial Advisors^[13] .
• The financial planner selected will provide a written agreement clearly outlining all the services that will be provided. Keep this document on file for future reference.

1.  www.sec.gov/answers/finplan.htm
2.  www.sec.gov/investor/pubs/invadvisers.htm
3.  www.fpanet.org/FindaPlanner/HowPlannersCharge/
4.  invest-faq.com/articles/fplan-compensation.html
5.  www.minervaplanninggroup.com/sample-financial-plans/
6.  www.sec.gov/answers/finplan.htm
7.  apps.finra.org/DataDirectory/1/prodesignations.aspx
8.  www.fpanet.org/FindaPlanner/ChoosingaPlanner/QuestionstoAsk/
9.  www.napfa.org/tips_tools/index.asp
10.  money.msn.com/retirement/
11.  www.cfp.net/utility/find-a-cfp-professional
12.  www.fpanet.org/PlannerSearch/PlannerSearch.aspx
13.  findanadvisor.napfa.org/Home.aspx

Check Out All Costs for Personal Finance		How Much Does Closing a Home Cost?		How Much Does a Traffic Ticket Attorney Cost?		How Much Do Funeral Flowers Cost?

Today's Featured Cost Articles

It's October already. Do you know where your snow tires are? October is Breast Cancer Awareness Month. When was your last mammogram? It's a Sunday afternoon in the fall. Ready to tailgate? Pruning trees before the storm season can help ensure dead branches won't imperil your home. Rain and winter are coming. Make sure your roadside assistance plan is up to date

About CostHelper

CostHelper is based in Silicon Valley and provides consumers with unbiased price information about thousands of goods and services. Our writers are experienced journalists who adhere to our strict editorial ethics policy.

CostHelper Community

Locksmith Paid: 95.00 I left my keys inside... [more] -Pepi44 Locksmith Cost Commercial and residential power washing and window cleaning Paid: 350.00 This company is truly amazing, I've never felt so satisfied after seeing the transformation of my home. I had green grime and algae growing rampid in the front my home. Within a few hours my home along with my deck was spotless... [more] -Emanuel 1 Window Cleaning Cost ER visit. Paid: 9040.00 Thought I was having a heart attack, went to ER... [more] -Omie EKG Cost Tune up Paid: 384.00 Feel ripped off.Nearly $400 for a tune up. All that was done was a spark plug replacement and fuel induction service... [more] -Sam Wise Tune-up Cost dented our friendhip Paid: 300.00 I was asked to be MOH and other bridesmaid was out of town. She agreed to be financial co-host. Offered bride shower for 12-15 people. She said she would invite 40. My small house could barely accommodate... [more] -70s gal Bridal Shower Cost Pet sat 2 dogs small poodle and medium Maltese Paid: 140.00 Friday night to Monday AM, fed both dogs a total of 6 times, administered allergy eye drops to 1 of dogs, total of 6 times and spent the night with them 2 nights... [more] -Pet Content While You're Away Pet Sitting Cost